The Next Big Short: The Debt Supercycle | Vincent Daniel, Porter Collins

Forward Guidance

Porter Collins and Vincent Daniels were some of the last investors to bet against the Federal Reserve and win. Over 13 years after the events of “The Big Short,” they reflect on the past decade wherein the Federal Reserve tamed asset price volatility by keeping short-term rates very low and steadily expanding their balance sheet via quantitative easing (QE).

Learning from this lesson, Daniels and Collins explains how Seawolf Capital largely avoided shorting stocks during 2021 because the Fed had the market’s back. Now that high inflation has forced the Fed’s hand to tighten monetary policy, Daniels and Collins think that 2022 will be an excellent year for short-selling, and that in particular the most vulnerable stocks are unprofitable growth companies that saw enormous price appreciation in 2020 and 2021. The pair explain why they remain bullish on nuclear energy, the cannabis industry, as well as stocks in the shipping and energy sector.

Follow Porter Collins @Seawolfcap

Follow Vincent Daniels @VD718

Follow Jack Farley @JackFarley96

Follow Blockworks @Blockworks_

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